Interpump Group S.p.a. · MIL:IP
Interpump — Q3 2019 Earnings Presentation
32 slides from Interpump's earnings presentation, Nov 8, 2019
Slide 1: Third Quarter 2019 Consolidated Results
O319 Third Quarter 2019 Consolidated Results Interpump Group S.p.A.
Slide 2: Table of Contents
Table of Contents Welcome! Our Q3, 9M 2019 & FY 2018 Results start on page 2 New to the company and could use an Introduction? See Who we are on page 8 Our yearly update on Markets and Diversification is on page 16 More information on Growth Strategy and Recent M&A on page 22 You will find Sharehold
Slide 3: 9M 2019 Consolidated Results
FINANCIALS 9M 2019 Consolidated Results € mn 9M 18 9M19 FY 2018 y/y Organic growth in sales +3.4% FX contribution +1.6% Increase in perimeter +2.6% TOTAL REPORTED SALES 953.6 1,026.1 +7.6% EBITDA 219.8 240.3 n.s. net of IFRS16 effect, for comparison only 228.8 +4.1% EBITDA / SALES 23.0% 23.4% net of
Slide 4: Q3 2019 Consolidated Results
FINANCIALS Q3 2019 Consolidated Results € mn Q3 18 Q319 FY 2018 y/y Organic growth in sales -0.4% FX contribution +1.4% Increase in perimeter +3.1% TOTAL REPORTED SALES 310.1 322.9 +4.1% EBITDA 73.0 78.1 n.s. net of IFRS16 effect, for comparison only 74.2 +1.7% EBITDA / SALES 23.5% 24.2% net of IFRS
Slide 5: Quarterly & YTD Results by Sector
FINANCIALS Quarterly & YTD Results by Sector € mn WATER-JETTING Q319 Q4 18 y/y 9M19 FY 2018 y/y Organic growth in sales +2.5% +1.7% FX contribution +1.7% +2.1% Increase in perimeter +3.3% +2.8% TOTAL REPORTED SALES 116.1 +7.5% 344.9 +6.6% EBITDA 34.9 n.s. 95.7 n.s. net of IFRS16 effect, for comparis
Slide 6: FY2018 Consolidated Results
FINANCIALS FY2018 Consolidated Results € mn FY 17 FY18 FY 2018 y/y Organic growth in sales +13.7% FX contribution -2.6% Increase in perimeter +6.6% TOTAL REPORTED SALES 1,086.5 1,279.2 +17.7% EBITDA 248.6 288.5 +16.0% EBITDA / SALES 22.9% 22.6% EBIT 198.9 236.5 +18.9% EBIT / SALES 18.3% 18.5% NET IN
Slide 7: Sales & EBITDA Trend
FINANCIALS Sales & EBITDA Trend € mn 1.279 289 1.087 249 923 895 199 180 672 557 136 527 472 389 400 105 105 95 322 87 74 48 08 09 10 11 12 13 14 15 16 17 18 08 09 10 11 12 13 14 15 16 17 18 First 12 months’ turnover Organic business of acquired companies Sales & EBITDA net Electric Motors (dismisse
Slide 8: Financial Ratios
FINANCIALS Financial Ratios Prudent debt policy and satisfactory return on capital employed Net Debt / EBITDA (12 M) Return On Capital Employed (12M) Net of treasury stock and including commitments for purchase of investments Operating profit / (consolidated shareholder's equity + net debt) 5x 25 D/
Slide 9: Who we are
Who we are INTERPUMP GROUP Public company (~75% free float) Listed at the Milan Stock Exchange since 1996 (ticker: IP.MI) Among the largest market caps in the STAR segment Stock is eligible for PIRs (government-sponsored saving investment plans for Italian households with significant tax advanta
Slide 10: Diversified across every dimension
Diversified across every dimension Diversification of our business is the key to our resilience and low overall cyclicality Both divisions have moved from the initial 100% concentration in one sector We sell our products all over the world, to a wide range of applications across either through our i
Slide 11: Know-How & Innovation: Water-Jetting Competitive Scenario
WATER JETTING Competitive Scenario Flow Handling Niche of Very High Pressure Plunger Pumps Food, Cosmetics & Pharma (estimated market size: <1bn/yr) (estimated market size: € 8 bn/yr) Wide High Know-How & Innovation Product Range Narrow Low Low High Low High Market Penetration Market Penetration GRO
Slide 12: Hydraulics Competitive Scenario
HYDRAULICS Competitive Scenario A fast-growing global player in a huge market (est. € 40 bn/yr) with countless opportunities for acquisitions Wide Product Range Narrow Low Market Penetration High Markets served, geographical presence Symbolic representation – not to scale 11
Slide 13: Main Companies, Brands and Products: Water-Jetting
WATER JETTING Main Companies, Brands and Products September 2019 – Total employees: 1,900 High-pressure Plunger Pumps Flow Handling Components High-pressure pumps Pumps, mixers, Plunger pumps Production and rental Specialized solutions (up to 1,500 HP - Homogenizers for components & high flow/
Slide 14: Main Companies, Brands and Products: Hydraulics
HYDRAULICS Main Companies, Brands and Products September 2019 – Total employees: 5,071 (Reggiana Riduttori not included) Power Take-Offs Valves Rubber hoses INTERPUMP HYDRAULICS, Directional Control Valves Muncie Power Products, Rotating manifolds I.M.M. PZB, Hydrocar, Takarada Hypress Planeta
Slide 15: Application examples: Water-Jetting
WATER JETTING Application examples FOOD, COSMETICS, PHARMACEUTICAL AUTOMOTIVE Pumps, valves, processing and cleaning systems Deburring of common-rail engine heads Agitators (including magnetic trasmission) Cutting of bodywork and other materials High-pressure homogenizers Cleanup of welded seals Wat
Slide 16: Application examples: Hydraulics
HYDRAULICS Application examples TRUCK OUTFITTERS EARTH-MOVING Tipping trucks Excavators and mini-excavators Trash collection - Sewer cleaning Backhoe loaders Firefighting - Snow plowing Skid-steer loaders Towing - Car Carriers Crane trucks AGRICULTURE TRUCK MANUFACTURERS Farm tractors Factory-fitted
Slide 17: Diversification by application field
Diversification by application field 2018 Total Turnover: Euro 1,279 million Truck 15% Other 4% Cleaning 5% Shipyard/Marine 3% Contractors 5% Unidentified application field Food Cosmetics & Pharma 7% (generic dealers) 28% Other Industries 8% Oil & Gas 2% Drilling & Mining 1% Earth Moving 6% Lifting
Slide 18: Diversification is a never-ending journey
Diversification is a never-ending journey Significant reduction of cyclicality and correlation achieved over the past decade WATER JETTING HYDRAULICS Diversification into many application sectors with different cycles Ongoing expansion into sectors with little or no cyclicality No single sector is c
Slide 19: International Profile: Interpump in Europe
International Profile: Interpump in Europe NORTHERN ITALY Map data ©2019 Geobasis-DE/BKG (©2009), Google, Inst. Geogr. Nacional Water-Jetting: Main Production Site Other Hydraulics: Main Production Site Other
Slide 20: International Profile: Interpump in the World
International Profile: Interpump in the World Water-Jetting: Main Production Site Other Hydraulics: Main Production Site Other 19 Map data ©2019 Google, INEGI
Slide 21: International Profile: Geographical breakdown of sales and costs
International Profile Geographical breakdown of sales and costs (2018) Sales Total Costs Rest of the World North Italy 17% 9% America 20% Eastern Europe North 6% America Italy 25% Rest of the 48% World 13% Rest of Europe Rest of Europe 31% 12% China 5% India 4% Germany Latin America 3% 7% 20
Slide 22: International Profile: emerging markets
International Profile Focus on emerging markets: a well-balanced presence Water-Jetting Hydraulics CHINA (大陆) INDIA BRAZIL New Delhi Beijing Brasília FY18 sales Mumbai FY18 sales FY18 sales €63 mn Pune €11 mn Rio de Janeiro Shanghai Bangalore Chennai €52 mn São Paulo 2015-2018 2015-2018 Avg. organic
Slide 23: M&A: a Successful Track Record
M&A: a Successful Track Record 40+ companies acquired since the IPO in 1996 representing roughly 2/3 of each year’s growth 3 kinds of acquisitions: Completing the product range, reinforcing competitive positioning, enhancing distribution Bolt-on acquisitions: no disruption in activity, immediate syn
Slide 24: Acquisition & Diversification Timeline: Water-Jetting
WATER JETTING Acquisition & Diversification Timeline Applications: from cleaning to countless Pumps and other machines for household and industrial cleaning NLB: selling and renting high pressure systems Hammelmann: focus on to a large and Acquisition of a control stake higher-pressure pumps. divers
Slide 25: Acquisition & Diversification Timeline: Hydraulics
HYDRAULICS Acquisition & Diversification Timeline Products: from PTOs only to integrated hydraulic kits, systems and services PZB & Hydrocar, Italian manufacturers of power take-offs. Galtech, MTC valves Muncie: Interpump becomes world American Walvoil reinforces leader in PTOs Mobile Power presence
Slide 26: 2019 Acquisitions: Hydra Dyne Tech
HYDRAULICS 2019 Acquisitions: Hydra Dyne Tech Acquired March 2019 - Headquartered in Ontario, Canada - Manufacturer of best-in-class rotary manifolds, valves and hydraulic cylinders, using the proprietary patented LocSealTM technology. Rotary manifolds represent an addition to Interpump’s product ra
Slide 27: 2019 Acquisitions: Reggiana Riduttori
HYDRAULICS 2019 Acquisitions: Reggiana Riduttori Acquired October 2019 - Headquartered in Reggio Emilia, Italy; subsidiaries in Australia, Brasil, Canada, China, France, India, - A world leader in design and manufacturing of the Netherlands, Slovakia, USA reduction gears with the most versatile, - C
Slide 28: Shareholders, Stock Performance, Analyst Coverage
Shareholders, Stock Performance, Analyst Coverage Updated 05/11/2019 Shareholder Structure Interpump Stock Performance Source: CONSOB/Company Total return to shareholders since the IPO: 13.3% per year (assuming dividend reinvestment and participation to the ‘09 capital increase) IPG HOLDING Share pr
Slide 29: Corporate Offices
Corporate Offices as of 31 December 2018 Board of Directors = independent Board of Statutory Auditors Fulvio Montipò Chairman and CEO Fabrizio Fagnola Chairman Paolo Marinsek Deputy Chairman Federica Menichetti Franco Garilli Lead Independent Director Alessandra Tronconi Angelo Busani Minority Direc
Slide 30: Appendix: Synthesis of results
Appendix Synthesis of results Euro/million 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net Sales 424.5 342.9 424.9 472.3 527.2 556.5 672.0 894.9 922.8 1086.6 1279.2 EBITDA 87.0 46.9 74.1 94.7 105.8 105.2 136,1 180.3 198.5 248.6 288.5 Margin 20.5% 13.7% 17.4% 20.0% 20.1% 18.9% 20.3% 20.1%
Slide 31: Appendix: Free Cash Flow (12 Months)
Appendix Free Cash Flow (12 Months) (euro/million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cash Flow from Operations 25.2 54.6 60.8 65.6 65.3 95.8 120.2 138.0 172.4 210.2 Change in Trade Working 44.4 10.1 (21.8) (12.3) (1.7) (23.7) (6.6) (12.2) (30.8) (61.4) Capital Capex (9.2) (8.7) (11.8
Slide 32: Carlo Banci
The Manager in charge of preparing the company’s financial reports declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records. S.Ilario d’Enz